Le Château continues to close stores amid Q2 loss

It was another difficult quarter for Le Château, as the Canadian retailer reported another net loss of $987,000 for the second quarter ended July 29, 2017.

Sales for the second quarter amounted to $55.3 million, a decrease of 7.7 percent from the same period last year, with 22 fewer stores in operation. Comparable store sales decreased 1.7 percent, while regular store sales increased 0.1 percent and comparable outlet store sales decreased 8.4 percent.

Le Château continues to close stores amid Q2 loss - facebook.com/lechateaustyleStill the company’s e-commerce business continued to show promising results with online sales once again climbing 20.3 percent.

Adjusted EBITDA for the second quarter of 2017 amounted to $3.8 million, compared to a loss of $1.1 million for the same period last year. The improvements in adjusted EBITDA for the second quarter were attributed to the company's strategy to recalibrate its retail network, close underperforming stores and further strengthen its rapidly growing e-commerce platform.

Le Château is continuing to recalibrate its retail network and as planned, closed nine underperforming stores during the first six months of 2017, and renovated one existing location. The company is planning to close an additional 12 stores during the remainder of 2017 and by the end of the current fiscal year will have achieved approximately 90 percent of its objective of reducing its store network to approximately 150 stores.